Good financial governance for a non-profit organisation (NPO) in South Africa is essential for accountability, sustainability, and compliance with legal and donor requirements.
Here’s what strong financial governance should include:
Registration: Ensure the NPO is registered with the Department of Social Development (DSD) and, if applicable, as a Public Benefit Organisation (PBO) with SARS for tax exemption.
Tax Compliance: Submit annual tax returns, even if exempt, and comply with VAT and PAYE regulations if applicable.
Financial Statements: Prepare audited or independently reviewed financial statements annually, as required by the NPO Act.
Budgeting: Develop an annual budget with clear income and expenditure forecasts.
Internal Controls: Implement financial controls such as dual signatories for payments, segregation of duties, and regular reconciliations.
Procurement Policy: Have clear guidelines for procurement to ensure transparency and prevent fraud.
Financial Reporting: Provide regular financial reports to the board and stakeholders.
Financial Oversight Committee: Have a finance subcommittee or treasurer to oversee financial management.
Conflict of Interest Policy: Ensure board members disclose conflicts of interest and do not personally benefit from NPO funds.
Risk Management: Identify financial risks and develop strategies to mitigate them.
Donor Reporting: Provide accurate and timely financial reports to donors and grantmakers.
Public Accountability: Publish annual reports and financial statements where applicable.
Ethical Fund Management: Ensure funds are used strictly for the intended purpose.
Diverse Income Streams: Reduce reliance on a single donor by having multiple funding sources (grants, donations, fundraising, social enterprises).
Reserves Policy: Maintain financial reserves for sustainability.
Investment Strategy: If applicable, ensure funds are responsibly invested.
Whether you’re starting a new nonprofit or strengthening an existing one, this course is designed to equip you with the skills and knowledge needed to excel in the nonprofit sector.
Throughout the course, you will:
1. Understand Compliance Requirements: Gain a clear understanding of legal and regulatory obligations to ensure your nonprofit remains compliant.
2. Learn Good Governance Policies: Explore best practices for financial management and operational policies to maintain accountability and transparency.
3. Master HR and Volunteer Management: Develop the skills to create effective HR contracts, manage staff, and foster strong relationships with volunteers.
4. Improve Marketing and Communication: Learn to effectively market your services and communicate your mission to key stakeholders.
5. Engage Donors and Clients Professionally: Acquire techniques to build and maintain respectful and sustainable relationships with donors and clients.
The course fee is R3500-00 – NPO Development.
For more information contact [email protected] or phone the office at (016) 976-2064.
